News Headline Summary

Market talk of a US think tank report on the FOMC, said to say the Fed will launch a fresh wave of USD 45bln in treasury purchases on Dec. 12th - unconfirmed

‘Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Reaction details (14:52)

- No reaction seen in treasuries as this is in line with expectations.

Analysis details (14:51)

- This think tank report is very similar to an article written in the FT yesterday and therefore is in line with current expectations.
- Each month under operation twist the Fed purchases USD 45bln of long dated treasuries which is sterilized with the same amount sold of short dated, therefore this talk suggests an unwinding of operation twist with purchases unsterilized from January.

05 Dec 2012 - 14:47 - Fixed Income Economic Commentary - Source: RANsquawk

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